On January 1, 2020, Bridgeport Company purchased 9% bonds having a maturity value of $290,000, for $313,782.32. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Bridgeport Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. * Your answer is incorrect. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Date 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 $ Cash Received Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method DOOOOO 20300 20300 20300 20300 20300 $ Interest Revenue 10000 21964.76 21848.23 21739.85 21639.06 21545.33 21458.16 $ Premium Amortized 1664.76 1548.23 1439.85 1339.06 1245.33 1158.16 $ Carrying Ar of Bonc 000000 3 3 3 3 3

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, Bridgeport Company purchased 9% bonds having a maturity value of $290,000, for $313,782.32. The bonds
provide the bondholders with a 7% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on
January 1 of each year. Bridgeport Company uses the effective-interest method to allocate unamortized discount or premium. The
bonds are classified in the held-to-maturity category.
* Your answer is incorrect.
Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)
Date
1/1/20
1/1/21
1/1/22
1/1/23
1/1/24
1/1/25
Cash
Received
Schedule of Interest Revenue and Bond Premium Amortization
Effective-Interest Method
20300
20300
20300
20300
20300
LA
$
Interest
Revenue
10
21964.76
21848.23
21739.85
21639.06
21545.33
21458.16
Premium
Amortized
1664.76
1548.23
1439.85
1339.06
1245.33
1158.16
Carrying Ar
of Bonc
3
3
3
100
Transcribed Image Text:On January 1, 2020, Bridgeport Company purchased 9% bonds having a maturity value of $290,000, for $313,782.32. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Bridgeport Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. * Your answer is incorrect. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.) Date 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 Cash Received Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method 20300 20300 20300 20300 20300 LA $ Interest Revenue 10 21964.76 21848.23 21739.85 21639.06 21545.33 21458.16 Premium Amortized 1664.76 1548.23 1439.85 1339.06 1245.33 1158.16 Carrying Ar of Bonc 3 3 3 100
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